Here in this blog forum, I am going to confer about the easy way of company registration in Bangalore and its privilege’s.

1. Company Registration in Bangalore is Made Simple- Even kids Can Do It.
Here in this blog forum, I am going to confer about the easy way of company registration in
Bangalore and its privilege’s.
WHAT IS A COMPANY?
Company registration in Bangalore is a simple and secured process. A company is an association of
many persons who contribute money or money’s worth to a common stock and employ it for a
common purpose. The contributed common stock is denoted in terms of money and it is the capital
of the company. The person who contribute it or to whom it belongs are its members and the
proportion of the raised capital to which each member is entitled is his/her share. The separate
personality or entity of a company signifies that a company is separate and distinct from its
members. A company must have a name and by that name it may sue and be sued. Without the
presence of shareholders or members, the company will not have separate existence. A company
can have own property and even it can have banking account in its own name. Similarly, a company
must comply with the formalities of registration required under the provisions of the Companies Act,
1956. A company can-not stand independently without the part of Board of Directors, Managing,
Director, agents, Director, etc.
“A Company is an artificial person with a natural person.”
TYPES OF COMPANIES
In general, companies are broadly classified as private company and public company under the
Companies Act 1956. There are companies that are limited by shares, guarantee and unlimited
companies too.
• A company in which the liability of its members to contribute to its assets is limited to the
amount, if any unpaid on their shares is said to be company limited by shares.
• When the liability of the member is limited by the memorandum, it refers to company
limited by guarantee. A guarantee company may or may not have a share capital.
• A company not having any limit on the liability of its members is termed as “unlimited
company.”
When comparing a private limited company and a public limited company, there arises many
differences in company perspective. The minimum and maximum number of member in a
private limited company is 2 and 50 whereas 7 and above in public limited company. The Article
of Association (AAA) of a private limited company restricts share transfer whereas in a public
limited company, there is no restriction.

2. PRIVILEGES ENJOYED BY PRIVATE LTD COMPANY IN BANGALORE
Allotment of shares: section 69 of the act applies only to the public companies which parallely
provides prohibition of allotment of shares until and unless the minimum subscription is
received.
Statutory meeting and report: The law that governs and holds the statutory report and meeting
as applied to public companies do not apply to private companies. Managerial remuneration and
rules regarding directors, demand for poll and inspection of books of accounts are some of the
other privileges that can be enjoyed in a private limited company. A private company which is
not a subsidiary of a public company and is not subjected to any restriction in the matter of the
concept managerial remuneration. The demand for poll is at least 5 members in case of public
companies and one or two in case of a private company. In a private limited company, no
person other than a member of the company concerned shall be entitled to inspect or obtain
loss and profitable account of the company under the section 610.
LEVERAGES OF AN INCORPORATED COMPANY IN BANGALORE
The birth of business is much more than death of a business. So, the formation of business
organization is on the side of increase not decrease; it may be either private or public or
partnership or LLP registration in Bangalore. Limited liability is undoubtedly the striking
advantage of corporate form of business over unincorporated bodies. The share-holders or
members are not personally liable and answerable to the creditors in the event of business
failure. The most vital reason for scope of borrowing is that, the company may deal with assets
charged in the ordinary course of the business. The rights and liabilities of the members are
most defined and understood than the partners in the firm. There is another main advantage of
an incorporated company; it is the capital structure of incorporation and its flexibility. Since, the
source of finance for public company are multifarious and varied, public company is a free bird
in raising its capital. So, the public companies are in a position to appoint better and high skilled
persons in the management team.

3. COMPANY REGISTRATION IN BANGALORE -GENERAL
The registration of a public or a private limited company is regulated under the Companies act
1956. When persons associated together for any lawful purpose and when a company is
prohibited in terms of express by the act from so registering, it cannot be registered under the
Act, 1956. There are some restrictions on the power. Even one person company registration in
Bangalore is a kind of much profitable company registration services in Bangalore. No person, or
partnership consisting more than 10 persons shall be formed for the purpose of carrying on
business of banking, unless it is registered as a company or formed in pursuance of some other
Indian Law. The memorandum of a company which is limited by guarantee shall also state that
liability of its members is limited. It also states that each member undertakes to contribute to
the asset of the company in the event of its being wounded up while he is a member or within 1
year, he ceased to be a member. Each and every person who is a member of a company or an
association is formed in contravention of this section shall be punishable with fine.
PROMOTION AND FORMATION AGREEMENTS
The close alliance of law with business will be evident when we come across the term promoter in
company promotion, as the term promoter is a term and not a law. The section provides that the
“expression promoter” is a party to the preparation of prospectus or of the portions thereof
containing the statement, but does not include any person by reason of his action in a professional
capacity for persons engaged in procuring the formation of the company. The company formation
and the company registration promoter may purchase property with the intent of forming a
company not by him or her-self but by others and transfers the entire property by which the
company is formed. The company promoter is a person who procures the underwriting of the
company’s capital and is a party to the preparation and issue of prospectus. The legal position of
promoter is very complicated. They are described either as agent or as trustees. For the purpose of
statutory liability, like a director, the duties and liabilities of promoters are so far.

4. NEED FOR PUBLIC ISSUE OF SECURITIES IN COMPANY REGISTRATION
The striking difference between a public limited company and a private limited company lies in the
matter of floatation’s. In a private company those who forms the company involve in necessary float
also. But no such floatation is possible in case of a public company, where the bulk of the capital is
from the outside public who respond to the company’s invitation. It is agreed that but for few basic
and heavy industries, the establishment of public companies particularly in the light of recession,
already set in the corporate market of the world, may not be that easy. A private limited company is
converted into public limited company, it can be continued as a private company, it can be deemed
to be a public limited company or a private limited company of the basis of investment. The growth
and development of public company are as such not to establish a new enterprise or new discovery.
The conversion from a private limited company to a public limited company may be either automatic
or with a valid reason.
SECURITIES, SHARES AND DEBENTURE
The security for a private limited company includes shares, scripts, stocks, bonds and debentures or
other marketable securities of a likely nature incorporated company or other body corporate. It is
also applicable in government securities and rights or interest in securities. The act has given an
inclusive but does not have exhaustive meaning of the term share. Share stands for share in the
share capital of a company and includes stock except where a distinction between stock and share is
expressed or implied. Section 25 and section 8 company registration in Bangalore does not need any
minimum capital requirement. It is right to a specified amount of the share capital of a company
carrying with it certain rights and liabilities while the company is a going concern. Share is not a sum
of money but is an interest made in a sum of money and made up of various rights contained in the
contract. Whereas, debenture includes debenture stock and bond and other securities of a company
whether constituting a charge on the asset or not. In a company registration, debenture has never
received any precise definition other than an acknowledgement.

5. STOCK EXCHANGE REQUIREMENTS OF A COMPANY REGISTRATION IN BANGALORE
In a company, for a free marketability of the security, a company may negotiate with one or more
stock exchange to list its securities. The approval of the concerned stock exchange will be required
where the securities are listed. A listing agreement is enters into the respective stock exchange and
the company listing application must be made in the prescribed form which is available from the
stock exchange. The prospectus of the company should confirm to the requirements of the stock
exchange and it must also satisfy the stock exchange that its articles have suitable provisions relating
to common form of transfer, non-enforcement of fully paid up share, calls in advance, forfeiture of
unclaimed dividend and right to call of share. The listing application must enclose number of
particulars which the company will forward to the stock exchange. Annual report, profit & loss
account, statutory and director’s copy, notice, balance sheets, circular, proceedings copy, call letter
and annual general meeting of the company falls under the stock exchange requirement of a
common company registration.
LIABILITIES FOR MIS- STATEMENTS IN PROSPECTUS
In general, a prospectus must be complete and perfect in all details, or in other words, nothing
should be omitted and nothing must be untrue in a prospectus. Section 65(1) of the companies act
provides the circumstances when statements included in a prospectus shall be deed to be untrue.
The mis-statements of the untrue statements in the company’s prospectus will also get covered by
interpretation of cases of omissions. The civil liability is generally classified into two types, the first
thing is general law liability and the second thing is company law liability.
CONCLUSION
Choosing the right category at right time & generation is very essential to start and company which
may a public limited company or a private limited company registration in Bangalore. For more
details, click here.
“Start a company and gain profit as well as professional experience!”